The White House is reviewing rules for how nonprofits should calculate taxes owed on income they earn from activities that diverge from their core mission.
The White House Office of Management and Budget received proposed regulations on Feb. 3 that may include details on a provision in the 2017 tax law (Pub. L. No. 115-97) that requires nonprofits to calculate unrelated business income tax (UBIT) separately for each trade or business.
- UBIT applies to any activities a nonprofit engages in that aren’t related to the tax-exempt purpose of the organization.
- The American Institute of CPAs asked the...